Question : Which of the following statements are incorrect with respect to Return on capital employed?

Option 1: Return on Capital Employed or Return on Investment assesses overall performance (profitability) of the enterprise.

Option 2: It measures how efficiently the resources of the business are used.

Option 3: Return on Capital Employed is not a fair measure of the profitability of any concern

Option 4: it should be compared with its own ratios of the past years

Question : ______________shows the relationship of profit (profit before interest and tax) with Capital Employed.

Option 1: Return on Equity

Option 2: Return on investment

Option 3: Net profit ratio

Option 4: Capital employed turnover ratio

Question : ______________shows the relationship of profit (profit before interest and tax) with Capital Employed.

Option 1: Return on Equity

Option 2: Return on investment

Option 3: Net profit ratio

Option 4: Capital employed turnover ratio

Question : Which of the following is the correct answer:
A: Overall Profitability ratios are based on the investment.
B: It is calculated by dividing capital employed by operating profit.

Option 1: Option A

Option 2: Option B

Option 3: Both of the above

Option 4: None of the above

Question : Which of the following statements is false with respect to the Activity ratio?

Option 1: These ratios are known as turnover ratios.

Option 2: These ratios measure the efficiency and rapidity of the resources of the Company.

Option 3: These ratios are generally calculated on the basis of revenue from operations or cost of revenue from operations. 

Option 4: None of the above